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What are ETFs?

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Wiki User
2013-11-10 18:36:52

Answer

ETF stands for exchange traded funds. It is a portfolio of

stocks or bonds that is sold to investors on open exchanges. The

investor purchases these shares through a broker. ETFs are often

inexpensive and are generally indexed to a particular published

benchmark. They are not mutual funds however. Unlike mutual funds,

when the investor buys a share in an ETF, the portfolio does not

change. The price of the ETF or net asset value (NAV) can be found

throughout the trading day.


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